Nalanda India Equity Fund Ltd, an arm of Nalanda Capital India Advisors Pvt. Ltd, a Singapore-based investment firm floated by former Warburg Pincus executive Pulak Prasad, has picked up a stake in listed apparel manufacturer TCNS Clothing Co. Ltd, which owns the W brand of womenswear.
Nalanda bought 43.2 lakh shares in a bulk deal on the National Stock Exchange at Rs 412.31 (about $5.66) apiece on Wednesday.
The investment of Rs 178.15 crore (about $24 million) translates into a 7.02% stake in the company.
TCNS Clothing’s shares rose 9.54% during the day and closed at Rs 441.55 (about $6.06) per share, 47% higher than the company’s 52-week low of Rs 300.4 (about $4.12) apiece and 28% lower than its 52-week high of Rs 614.45 (about $8.44) apiece.
TCNS Clothing first got Matrix Partners India as a financial backer in 2011. Matrix had made a follow-on investment in 2013.
Matrix then exited the investment in August 2016. At the time, TA Associates invested Rs 931 crore (about $127 million) to acquire a 44.82% stake in the company.
The company got listed in July 2018 and made a weak debut on the stock exchange.
TA Associates’ stake had fallen to below 29.3% through a partial exit in the company at the time of the IPO. It continues to hold that stake in the company.
In April 2020, Elevation Capital (formerly known as SAIF Partners) acquired a 2.67% stake in the company through an open market transaction.
Nalanda Capital has a couple of other listed apparel firms in its portfolio. It holds close to a 7.13% stake in Kewal Kiran Clothing, which owns brands such as Killer, Integriti, LawmanPg3 and Addictions.
Nalanda also holds a 7.56% stake in Jockey International’s Indian partner Page Industries.